Second Mortgage Loan Modifications In the Works

Last updated on February 2nd, 2018

Bank of America announced today that it’s the first mortgage servicer to formally commit to the pending second-lien component of the Home Affordable Modification Program (HAMP), which has yet to be finalized.

The so-called “Second Lien Modification Program” (2MP) will allow loan modifications on second mortgages upon completion of a HAMP modification on the associated first mortgage.

“For many homeowners facing severe financial difficulty, decreasing the payment on the first mortgage without a reduction in the payment on the second lien may not produce an affordable combined mortgage payment,” said Barbara Desoer, president of Bank of America Home Loans, in a press release.

“Signing this contract ahead of the release of the final program guidelines is a continued demonstration of Bank of America’s strong overall commitment to homeownership retention and to the Making Home Affordable program as the centerpiece of these efforts.”